15 hours ago
Mideast Stocks: UAE gains on trade optimism, earnings hopes; Saudi slips in volatile trade
Gulf equities were mixed on Monday, with UAE markets tracking global gains on trade optimism, while Saudi markets edged down amid mixed earnings and several blue-chip stocks trading ex-dividend.
The United States and the European Union on Sunday struck a framework trade agreement that will impose a 15% import tariff on most EU goods, half the previously threatened rate. Meanwhile, senior U.S. and Chinese officials will meet in Stockholm later on Monday to try to extend their tariff truce before an August 12 deadline.
Saudi Arabia's benchmark index retreated 0.7%. Banque Saudi Fransi and Arab National Bank dropped 5.3% and 3.8%, respectively, after their shares traded ex-dividend. Petrochemical giant Saudi Kayan reversed early gains to close slightly lower as its second-quarter loss, though halved from a year earlier, was wider than analysts expected. Arabian Cement slid more than 3% after its second-quarter profit fell short of estimates.
"A potential rebound hinges on continued positive earnings announcements and a recovery in oil prices", said George Pavel, general manager at Middle East.
Dubai's benchmark index rose as much as 1.4%, before paring gains to end up 0.3% at its highest close in 17-1/2 years. That was the fourth straight day of gains, supported by strong second-quarter earnings and global trade optimism, led by a 2.3% gain in Emirates NBD Bank.
The Abu Dhabi index edged up 0.2%, supported by a nearly 2% jump in heavyweight ADNOC Gas. Qatar's benchmark index eased 0.4%, as traders locked in profits following a recent rally, with most sectors closing in the red, led by a 2.3% decline in Qatar Islamic Bank.
Investors are now looking ahead to the next wave of corporate results this week, after a strong run in bank earnings helped lift sentiment across the region, Pavel noted. Outside the Gulf, Egypt's blue-chip index edged down 1.4% following a record peak in the previous session, with Talaat Moustafa Group declining over 3.5%.
SAUDI ARABIA dipped 0.7% to 10,885
ABU DHABI added 0.2% to 10,362
DUBAI rose 0.3% to 6,168
QATAR retreated 0.4% to 11,205
EGYPT fell 1.4% to 34,076
BAHRAIN gained 0.1% to 1,951
OMAN advanced 0.1% to 4,743
KUWAIT slid 0.7% to 9,174
